MANILA, Philippines - Regulators have released the bidding rules for the last license to offer third generation or 3G mobile phone services, allowing all market players to bid amid protests from Lopez-led Bayan Telecommunications, Inc.

The National Telecommunications Commission (NTC) said in its Memorandum Circular 01-03-2010 that telcos seeking to bid for the “spectrum fee” of the last 3G slot must send applications to determine eligibility.

“The remaining allocated 3G frequency band shall be granted to the best qualified [applicant/bidder] who will use it efficiently and effectively to meet public demand for telecommunications service, ensure universal coverage and foster a healthy competitive environment,” the circular stated.

It added “qualifications, such as, but not limited to track record when applicable, rollout plan and financial soundness as a means to foster competition” would be considered.

Telco companies could not be reached for comment.

The minimum bid price for the annual spectrum users fee is P65 million. A performance bond “equivalent to 30% of the rollout cost for the first two years but not below P1 billion” must be paid by the winning bidder for five years or upon completion of the rollout.

No deadline was set by the NTC for the applications.

Previously, the NTC assigned 3G frequencies to companies it deemed qualified. The rules were later revised to encourage competition.

Earlier, the NTC disqualified Globe Telecom, Inc., Smart Communications, Inc., Connectivity Unlimited Resource Enterprise (CURE) and Digitel Telecommunications Phils., Inc. from bidding for the slot but later reversed its decision. The companies got 3G slots in 2005.

Bayan Telecommunications (Bayantel) which has a pending case against the regulator regarding the last 3G slot, had asked the NTC not to push through with the bidding. Bayantel said the regulator must wait for the decision of the Court of Appeals.

Bayantel insists that it is the rightful holder of the last 3G slot as it had qualified under the old rules but was passed over by the regulator.

Holders of 3G slots are expected to “commence installation and construction of the 3G network and facilities not later than 12 months from the date of award.”